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Published Dec 11, 2023

Bitcoin’s Rally, Elon’s xAI Fundraising, and Alaska Airlines Acquires Hawaiian | Prof G Markets

Scott Galloway and Ed Elson delve into the implications of Bitcoin's rally amidst ETF anticipation, Elon Musk's strategic fundraising for his AI venture Xai, and the transformative Alaska-Hawaiian Airlines merger, highlighting the dynamic shifts in cryptocurrency, AI, and the airline industry.
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Episode Highlights

  • Apple's Strategy

    Scott Galloway predicts that Apple's entry into the AI market will be a major business story in 2024. He believes Apple will adopt its usual strategy of being a "second mouse," waiting to refine and perfect existing technologies before capturing significant market share. This approach has worked for Apple in the past with products like the iPhone and iPod, and Scott anticipates a similar success in AI.

    Apple defines the term second mouse. Specifically, the second mouse gets the cheese.

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    He suggests that Apple's AI could bring a more consumer-friendly and aspirational feel to the current sterile AI landscape 1.

       

    Musk's Fundraising

    Elon Musk is raising $1 billion for his AI venture, Xai, with $135 million already secured. Scott Galloway questions Musk's strategy, noting that Musk aims to retain 75% of the upside while using assets from companies like Tesla and Twitter. This raises concerns about governance and shareholder interests.

    If these companies had anything resembling good governance, who are fiduciaries for the existing shareholders, they'd say, sorry, girlfriend, if you want to start a new company using our assets, fine, but we're going to own the vast majority of it.

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    Despite these concerns, Scott acknowledges Musk's ability to generate global awareness and trial adoption for his ventures 2 3.

       

    AI Competition

    The AI landscape is rapidly evolving, with major players like Google making significant strides. Ed Elson highlights Google's Gemini as a noteworthy innovation, with Sergey Brin actively contributing to its development. This product positions Google as a strong competitor to OpenAI's GPT models.

    The company expects Gemini to power its consumer apps and smartphones and serve as a true competitor to OpenAI's GPT models.

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    Scott Galloway and Ed discuss the prevalence of "AI washing," where companies inflate their value by associating with AI, drawing parallels to past trends like the dot-com boom 4 5.

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